Question 2 One of the chemical fertilizers produced by Ozone Chemicals passes two processes. In Process 1, normal losses are 20% of input whilst in Process 2 normal losses are 10% of input. The losses can be sold for RM1.20 per kg for Process 1 and RM1.40 per kg for Process 2. For February 2007, the following data were recorded:- Process 1 Direct material of 9,000 kg at RM1.65 per kg Direct labour cost of RM8,330(RM3.40 per hour) Production overhead is absorbed at RM2.60 per direct labour hour Actual output was 7,000 kg Process 2 Additional material of 600 kg of RM 1.80 per kg Direct labour of 1,000 hours ( RM3.40 per hour) Production overhead absorbed RM 2,900 Actual output was 6,900 kg. Note: The price per unit is to be calculated to four decimal places and all other calculations are to be rounded up to nearest RM. Required: a. Prepare Process 1 and Process 2 Accounts of the company.

Question 2 One of the chemical fertilizers produced by Ozone Chemicals passes two processes. In Process 1, normal losses are 20% of input whilst in Process 2 normal losses are 10% of input. The losses can be sold for RM1.20 per kg for Process 1 and RM1.40 per kg for Process 2. For February 2007, the following data were recorded:- Process 1 Direct material of 9,000 kg at RM1.65 per kg Direct labour cost of RM8,330(RM3.40 per hour) Production overhead is absorbed at RM2.60 per direct labour hour Actual output was 7,000 kg Process 2 Additional material of 600 kg of RM 1.80 per kg Direct labour of 1,000 hours ( RM3.40 per hour) Production overhead absorbed RM 2,900 Actual output was 6,900 kg. Note: The price per unit is to be calculated to four decimal places and all other calculations are to be rounded up to nearest RM. Required: a. Prepare Process 1 and Process 2 Accounts of the company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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